Because the GDP is devided by the debt which means that all debt is bad.

Yes, but that is an exception, not the rule. In general, large amounts of debt are not good for an economy, and this equation punishes that. If the national debt equals just 10% of GDP, then you get a value of 10 for that portion, which is a large number within this equation.

Because the GDP is devided by the debt which means that all debt is bad.

Yes, but that is an exception, not the rule. In general, large amounts of debt are not good for an economy, and this equation punishes that. If the national debt equals just 10% of GDP, then you get a value of 10 for that portion, which is a large number within this equation.

But still, it's for that reason alone that this equation is incorrect. Plus the point DK raised.

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